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HomeMy WebLinkAbout2021-08-16; Economic Development Subcommittee; ; Inclusive Economic Recovery and Development StrategyEconomic Development Subcommittee Meeting Date: To: I From: ltem#2: Recommendation: August 16, 2021 City Council Economic Development Subcommittee David Graham, Chief Innovation Officer Inclusive Economic Recovery and Development Strategy {city of Carlsbad Receive an informational report regarding the development of a long-term, inclusive economic development strategy. Discussion: The City of Carlsbad has invested in economic development for many years. In recent years this work · was led by the economic development division of the Community and Economic Development department. In March of 2020, the economic development functions at the city were combined with the Office of Innovation and Economic Development creating the city's first Innovation & Economic Development department in the Administrative Services branch. At the time of this re-organization, an internal review was completed to assess the city's economic development challenges and opportunities. During this review it was identified that while economic development is included in various city visioning and planning documents such as the Community Vision and General Plan, there is not a current economic development strategy or strategic plan. As a primary outcome of the Inclusive Recovery Assessment and Implications Report that was presented to the City Council on May 11, 2021, and with direction from the City Council, staff has been working to procure a consultant to assist with the development of an inclusive economic recovery and development strategy for both the near-term activities and long-term goals. A Request for Proposals (RFP) is in development and will be issued by the end of August with the goal of completing the procurement process in the early fall. Staff will provide regular updates to the Economic Development subcommittee with the ultimate goal of completing the work product in the spring or early summer of 2022. Core elements of the strategy development process will include assembling new baseline data about Carlsbad's economy, cataloging community assets and opportunities, analyzing economic pressures, engaging stakeholders. -including business organizations, businesses, workers, and residents -and developing strategic goal and tactics recommendations that the city can employ. As this strategy is being created in the recovery phase of the COVID-19 pandemic, it also brings an opportunity to ensure the city supports recovery and growth in a way that is inclusive and allows the city to support both hard hit sectors that will take longer to recover, as well as innovation industries that were quicker to rebound and are pursuing growth. · Prior to the COVID-19 pandemic, Carlsbad's unemployment rate was 2.9%. In April of 2020, unemployment spiked to 13.8% before gradually declining. It currently sits at 5.9%. Aug.16,2021 Item #2 Page 1 of 2 Economic Development Subcommittee -Staff Report August 16, 2021 Page 2 The tourism economy was hit hardest, with health restrictions preventing usual leisure travel and most groups cancelling planned conferences and events. While leisure travel has recovered quickly, group travel is expected to lag, leaving a noted gap in economic recovery. Innovation employers pivoted more quickly, but as the economy recovers, the nature of work in these industries has changed, creating potential challenges and opportunities to economic development. Fiscal Impact: The City Council approved the allocation of $100,000 of funding dedicated to the Economic Recovery and Revitalization Initiative for the strategy development process. Exhibits: None. Aug.16,2021 Item #2 Page 2 of 2